Commission deputy chair Delia Rickard said such "credence claims" were a priority for the commission, particularly in the food and beverage industries, where such references could influence buying choices.

"Credence claims such as 'organic' can be used to justify higher prices and create a competitive advantage for the user. As such, it is essential that they are only used correctly," she said.

But she said organic produce standards already acknowledged that "water cannot be organic", with such claims indicating a farmed or grown product that is produced in line with the standards.

The commission rejected claims by manufacturers that the word "organic" was simply a brand name, and not representative of the product.